Antara News·Indonesia·Tuesday, October 27, 2026 at 08:18 AM UTC

Inalum says bauxite processing can boost value and jobs

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Ahmad MF, Rahmad Nasution

Jakarta (ANTARA) - PT Indonesia Asahan Aluminium (Inalum) said processing bauxite into aluminum could increase the mineral's value while boosting state revenue, employment, and regional economic growth.

Arif Haendra, the company's director of corporate strategy, business development, and commercial, said bauxite is processed into alumina and then aluminum and other higher-value products.

"Bauxite priced at $40 a metric ton can fetch about US$400 as alumina, a roughly tenfold increase," Haendra said in remarks cited in Jakarta on Tuesday.

Processing bauxite into alumina costs about US$250 to US$300 a metric ton. At an alumina price of US$400, the difference is US$100 to US$150 before other costs.

Alumina priced at about US$400 a metric ton can fetch US$3,200 to US$3,500 when processed into aluminum. Those prices imply a value increase of 80 to 87.5 times from raw bauxite.

Downstream processing also boosts economic activity through tax revenue, job creation, transportation, and businesses operating around industrial zones, he said.

Mempawah District in West Kalimantan, where an alumina-processing industry is being developed, illustrates the impact, with local growth rising alongside industrial activity and supporting businesses, Haendra said.

Industrial development in Mempawah is projected to create about 130,000 jobs. Alumina production is also generating more port traffic and economic activity in surrounding communities.

He said downstream investment should continue beyond alumina and aluminum to develop products with a wider range of specifications and applications. Aluminum billets can be extruded into various products, including profiles used in buildings, Haendra added.

Other applications include electrical cables, automotive components, and materials for electric-vehicle batteries.

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